Coalitional instability of the distributive Lindahl equilibrium (☆)

B-Tier
Journal: Economic Theory
Year: 1996
Volume: 8
Issue: 3
Pages: 565-575

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Bergstrom [3] has showed that the Lindahlian approach to the analysis of public goods may also be used to analyze a model of wide-spread externalities in which agents have preferences defined on allocations rather than on individual commodity bundles. He has provided versions of the first and second welfare theorem for a distributive Lindahl equilibrium and also presented sufficient conditions for its existence. However, we shall show that, in contrast to Foley's [4] result on the core stability of a Lindahl equilibrium, a distributive Lindahl equilibrium need not satisfy coalitional stability. We will provide a robust example in which the unique, distributive Lindahl equilibrium does not belong to the -core defined either as in Scarf [11] or as in Yannelis [12].

Technical Details

RePEc Handle
repec:spr:joecth:v:8:y:1996:i:3:p:565-575
Journal Field
Theory
Author Count
1
Added to Database
2026-01-24